World FDI figures

The latest World Investment Report 2009 by UNCTAD is out and it has thrown up some interesting numbers.

» Global FDI inflows fell from a historic high of $1,979 billion in 2007 to $1,697 billion in 2008, a decline of 14%

» Developed Countries: FDI inflows to developed countries fell by 29% to $ 962 billion mostly due to cross-border M&A sales that fell by 39% in value.

• FDI flows into the EU-27 countries fell by 40% in 2008, to $503 billion
• The United Kingdom lost its position as the largest source and recipient country of FDI among European countries to France
• FDI inflows into the United States rose by 17%, to reach an all-time high of $316 billion. US remains the highest home & host country for FDI

» Investments to developing and transition economies surged, increasing their share in global FDI flows to 43%. They also accounted for 19% of outflows

» South, East and South-East Asia: Region witnessed a 17% expansion in FDI to hit a high of $300 bn.

• FDI was up by 49% in South Asia ($51 bn), 24% in East Asia ($187) and -14% in South-East Asia ($60 bn).
• Inflows to China reached a historic high ($108 billion) making it the third largest FDI recipient in the world.
• India with inflows of $42 billion, ranked the 13th largest FDI recipient.
• Outward FDI from South, East and South-East Asia rose by 7%, to $186 billion in 2008. FDI from China reached $52 billion in 2008, 132% up from 2007.

» West Asia: FDI in the region rose by 16%, to reach $90 billion, largely due to a significant growth of inflows to Saudi Arabia (57%, to $38 billion)

• In Turkey inflows fell to $18 billion, down by 17%.
• In the United Arab Emirates, they decreased by 3%, to $14 billion.
• FDI outflows from West Asia declined by 30% to $34 billion

» Latin America and the Caribbean: Inflows rose by 13% to $144 billion

• FDI outflows increased by 22% to $63 billion

» Africa: FDI inflows into Africa increase by 27% to $88. This increased the FDI stock in the region to $511 billion. While Southern Africa attracted nearly one third of the inflows, West African countries recorded the largest percentage increase (63%).

» South-East Europe and the CIS: Inflows to the transition economies rose by 26% to $114 billion in 2008 (a record high).

» The primary sector witnessed a growth of 17% in the value of M&A sales in 2008; whereas manufacturing and services – which account for the largest proportion of world inward FDI stocks – reported declines of 10% and 54% respectively.

» Cross-border M&As by Private Equity funds fell to $291 billion in 2008, or by 38%, from a peak of $470 billion in 2007.

» Compared with 2007, the value of their cross-border M&As by Sovereign Wealth Funds was up 16% in 2008, to $20 billion